FX.co ★ Simplified wave analysis of GBP / JPY pair for the week of February 7

Large scale graph:

The bearish wave that began in February last year has now been fully formed and the proportion of all its parts have been observed. Given the presence of a reversal pattern, we can state the completion of a bearish trend.

Medium-scale graph:

Since January 3, the price forms an upward wave with strong potential. On a larger scale chart, it will at least take the place of correction.

Small-scale graph:

The price decrease that started on January 25 in the time scale wave took the place of the middle part (B). Calculating the support indicates the probable termination area.

Forecast and recommendations:

Given the wave algorithm of the movement, sales of the cross pair in the coming weeks will be hopeless. Supporters of the international trade style are advised to follow the buy signals of the instrument.

Resistance zones:

- 145.50 / 146.00

Support areas:

- 141.50 / 141.00

Explanations of the figures:

The simplified wave analysis uses waves consisting of 3 parts (A – B – C). Three consecutive graphs are used for analysis. Each of these analyzes the last incomplete wave. Zones show calculated areas with the highest probability of reversal. The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure and the dotted exhibits the expected movement.

Note: The wave algorithm does not take into account the duration of tool movements over time. To conduct a trade transaction, you need confirmation signals from the trading systems you use!